Taiwan stocks rose, led by Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), after rival Intel Corp said second-quarter sales may beat some analysts' expectations as computer chip demand improves.
Taiwan's TWSE Index rose 76.66, or 1.4 percent, to 5,508.61, ending a three-day, 1.8 percent loss. Within the index, 265 stocks advanced and 153 declined, while 92 were unchanged. TSMC accounted for about a seventh of the index's gain.
"We've been increasing our weighting in chip stocks in the last month and a half," said Emil Wolter, who helps manage US$3 billion in global emerging markets at Pictet Asset Management in London. "Investors on a 12 to 18-month basis are going to be rewarded." Companies who make chips on a made-to-order basis rose, on hopes demand will improve after Intel, the biggest chipmaker, said second-quarter sales will be US$6.2 billion to US$6.8 billion, more than some analysts expect. Intel also said business from computer makers started to pick up in March, though other markets still look challenging. Intel's stock rose as much as 12 percent in after-hours trading.
TSMC, the biggest chip manufacturer on a made-to-order basis, rose NT$1.50, or 1.8 percent, to NT$85. United Microelectronics Corp (UMC,
Memory chipmakers rose as investors bet that interest-rate cuts by central banks around the world will spur economic growth later this year and boost demand for computers, telecommunication devices and consumer electronic chips. Analysts hope the second half of the year, traditionally the high season in demand for electronics, will spur semiconductor purchases.
Mosel Vitelic Inc (茂矽電子) rose NT$0.90, or 3.7 percent, to NT$25.30. Powerchip Semiconductor Corp (力晶半導體) rose NT$1.20, or 3.8 percent, to NT$33. ProMos Technologies Inc (茂德科技) rose NT$1, or 2.8 percent, to NT$37.20. Winbond Electronics Corp (華邦電子) rose NT$2.50, or 6.3 percent, to NT$42.50.
Banks advanced on hopes their non-performing loans have peaked as the central bank's 62.5 basis point in rate cuts since December may relieve repayment pressures on companies.
China Development Industrial Bank (中華開發工銀), Taiwan's biggest lender by market value, rose NT$0.20, or 0.7 percent, to NT$30.50. Chinatrust Commercial Bank (中國信託商銀), the second-largest, rose NT$0.40, or 1.7 percent, to NT$24.70. United World Chinese Commercial Bank (世華商銀), the third biggest, rose NT$0.60, or 2.3 percent, to NT$26.60.
Compeq Manufacturing Ltd (
Goldman Sachs Group Inc lowered its 2001 earnings per share estimate for the printed circuit-board maker by 15 percent to NT$5.05 on expectations of lower demand. In four days, the stock lost 8.9 percent.
Asustek Computer Inc (華碩電腦) rose NT$10, or 6.7 percent, to NT$160 on hopes orders for its notebook computers and motherboards will rise. Intel indicated that its business from computer makers is beginning to pick up, suggesting demand is rising.
SLOW-MOVING STORM: The typhoon has started moving north, but at a very slow pace, adding uncertainty to the extent of its impact on the nation Work and classes have been canceled across the nation today because of Typhoon Krathon, with residents in the south advised to brace for winds that could reach force 17 on the Beaufort scale as the Central Weather Administration (CWA) forecast that the storm would make landfall there. Force 17 wind with speeds of 56.1 to 61.2 meters per second, the highest number on the Beaufort scale, rarely occur and could cause serious damage. Krathon could be the second typhoon to land in southwestern Taiwan, following typhoon Elsie in 1996, CWA records showed. As of 8pm yesterday, the typhoon’s center was 180km
TYPHOON DAY: Taitung, Pingtung, Tainan, Chiayi, Hualien and Kaohsiung canceled work and classes today. The storm is to start moving north this afternoon The outer rim of Typhoon Krathon made landfall in Taitung County and the Hengchun Peninsula (恆春半島) at about noon yesterday, the Central Weather Administration (CWA) said, adding that the eye of the storm was expected to hit land tomorrow. The CWA at 2:30pm yesterday issued a land alert for Krathon after issuing a sea alert on Sunday. It also expanded the scope of the sea alert to include waters north of Taiwan Strait, in addition to its south, from the Bashi Channel to the Pratas Islands (Dongsha Islands, 東沙群島). As of 6pm yesterday, the typhoon’s center was 160km south of
STILL DANGEROUS: The typhoon was expected to weaken, but it would still maintain its structure, with high winds and heavy rain, the weather agency said One person had died amid heavy winds and rain brought by Typhoon Krathon, while 70 were injured and two people were unaccounted for, the Central Emergency Operation Center said yesterday, while work and classes have been canceled nationwide today for the second day. The Hualien County Fire Department said that a man in his 70s had fallen to his death at about 11am on Tuesday while trimming a tree at his home in Shoufeng Township (壽豐). Meanwhile, the Yunlin County Fire Department received a report of a person falling into the sea at about 1pm on Tuesday, but had to suspend search-and-rescue
RULES BROKEN: The MAC warned Chinese not to say anything that would be harmful to the autonomous status of Taiwan or undermine its sovereignty A Chinese couple accused of disrupting a pro-democracy event in Taipei organized by Hong Kong residents has been deported, the National Immigration Agency said in a statement yesterday afternoon. A Chinese man, surnamed Yao (姚), and his wife were escorted by immigration officials to Taiwan Taoyuan International Airport, where they boarded a flight to China before noon yesterday, the agency said. The agency said that it had annulled the couple’s entry permits, citing alleged contraventions of the Regulations Governing the Approval of Entry of People of the Mainland Area into the Taiwan Area (大陸地區人民進入台灣地區許可辦法). The couple applied to visit a family member in
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